U. S. moves plunged on Friday after a December jobs report dashed investors’ hopes for more interest rate cuts by the Federal Reserve this year.
The Dow Jones plunged 697 points, while the Nasdaq 100 and S&P 500 declined more than 1%.
The economy added 256,000 jobs in December, well above the average economist of 155,000. The unemployment rate fell to 4. 1% of 4. 2% in November.
The solid task report has caused a building in bond yields, the 10-year US Treasury yield, reaching its point since October 2023, achieving an intraday summit of 4. 79%.
Markets now expect only a 25-story interest rate cut from the Fed this year, according to the Fedwatch CME tool, but economists even that projection is overly optimistic.
“Given a resilient labor market, we now think the Fed cutting cycle is over. Inflation is stuck above target and risks are skewed to the upside. Economic activity is robust. We see little reason for additional easing,” economists at Bank of America said in a Friday note.
Wharton professor Jeremy Siegel backed up that view in an interview with CNBC on Friday.
“I think the market is saying that maybe there are no rate cuts in 2025, and the 10-year can be broken very well above 5%,” Siegel said.
Siegel under the pressure that higher bonus yields have traditionally reduced inventory evaluations of the market market, it would not be unexpected that the inventory Marketplaceplace is running this year.
Here is the United States indices would have at 4:00 p. m. Close Bell Friday:
Here’s what most today:
In fundamental products, bonds, and crypto: